Exxaro Resources has reported a 25% increase in core EBITDA to R7 291-million (FY19: R5 832 million), and a 26% increase in core HEPS at R29.73 (FY19: R23.54) for the financial year ended 31 December 2020 – a notable achievement in the face of the Covid-19 pandemic, a destressed local economy and relatively low thermal coal pricing.
Mxolisi Mgojo, CEO of Exxaro. Photo by Exxaro
The Group also announced a record dividend distribution and achieved significant safety milestones.
According to Mxolisi Mgojo, CEO of Exxaro, these are very pleasing results. “I must commend all our people for this resilient performance. The Covid-19 pandemic has highlighted the deeply connected nature of our society and emphasised the importance of an integrated sustainable development approach,” says Mgojo. Exxaro is focused on agile responses to short-term challenges, while continuing to support a just transition towards a low carbon economy and sustainable communities. “Our embedded safety and health strategies and stakeholder relations enabled us to respond timeously and effectively to the pandemic.”
The company navigated significant headwinds and new risks brought about by the Covid-19 pandemic during the year. Preventative measures such as in-house diagnostic capabilities for screening, testing, and tracing as well as a comprehensive management of cases through the Covid-19 call centre, provision of oximeters, isolation facilities and integrated employee assistance support were all in place soon after the National State of Disaster was announced in the first quarter of 2020. Notably all Exxaro operations returned to full capacity from 2H20 with Matla at 80% until end 3Q20 which played out positively for the record export volumes and increase in the mix of RB1 coal.